Westpac acts against Brisbane developer Buranda

Westpac Banking Corp
is seeking to wind up Brisbane-based developer Buranda Properties, bringing to a head a four-year-old dispute over $35 million worth of property.

The developer, Paul Cunningham, who made a submission to a federal Senate inquiry into banking, said he had been mistreated by Westpac and would defend himself on Wednesday when the wind-up order is heard by a Supreme Court judge.

“They are hell bent on winding me up for having a go at the receiver," he said. “We are going to oppose the wind-up order because we have an appeal in Federal Court."

The receiver, Korda Mentha, struck a deal with a separate company to buy Buranda’s properties. However, that deal has fallen through. Mr Cunningham alleges that deal prevented an alternative sale from proceeding.

Westpac lent Mr Cunningham’s company $32 million in 2007, secured against properties that were once valued at $57 million. However, values plunged and Buranda agreed to progressively pay back debt and offer other property as security.

It met the first two payment deadlines but missed a third, after Westpac refused an offer by Mr Cunningham’s wife to buy two of the properties for $4.2 million and $2.3 million. A court later found that Mr Cunningham’s failure to meet the agreement was caused by Westpac’s breach of the agreement in refusing to allow a sale.

A Westpac spokeswoman declined to comment on why the wind-up order had been made but said: “In 2010, the Federal Court, with Buranda Properties’ consent, made an order that Buranda Properties pay Westpac $31.22 million, plus interest. In 2012, the Federal Court upheld that order."